IRS Form 7200—Advance Payment of Employer Credits Due to COVID-19 is to request an advance payment of tax credits for qualified family leave wages, sick pay, and employee retention credit. File Form 7200 to request advance payment for the above that you will claim in the following IRS tax forms. For Puerto Rico, file Form … Read more
Social Security tax is part of the Federal Insurance Contributions Act (FICA) tax. It’s collected by employers when processing payroll. The tax rate is fixed at 6.2% for both employees and employers. Calculating the Social Security tax is simple. It’s basically 6.2% of the employee’s income. The employer is responsible for matching the Social Security … Read more
Taxes withheld on W2 provide enough information to employees about how much tax in total was withheld from their income. Form W2 not only provides the taxes withheld from the employee’s income when processing payroll but the total amount of income paid as well. These two alone is enough for many taxpayers to file a … Read more
AGI is the term used for Adjusted Gross Income. It’s basically your taxable income. There are many ways to calculate this, so how to calculate AGI from a W2? 2021 tax season is ahead of us. Although there are a few tax changes here and there, the way you will calculate your AGI from a … Read more